- Turkey went for boycott dollar as lira went to an all-time low versus the U.S. dollar.
- The country’s economy was being viewed as imbalanced due to rampant inflation.
- The United States also threatened to impose “big sanctions” as the relationships between both countries soured.
- Pakistan needs to do the same.
One group of the patriot protestors produced a symbolic, 2 meter-long dollar banknote and burned it in public. They recorded their protest of the greenback’s “attack on our good nation.” Several others followed and burned dollar notes in the streets. This is how Turkey recorded its boycott dollar protest.
In the wake of turmoil that engulfed the Turkish Lira (TLR) surpassed a rate of 7 against the U.S. dollar. Subsequently, the rebound in the currency to around the 5.5 is viewed as potentially a “dead cat bounce” by some players in the foreign exchange market. Others declared it “temporary.”
How did the crisis initiate?
The first wave of selling of crisis came after a Turkish delegation returned from the United States. There was no progress on the detention of a U.S. pastor Andrew Brunson, which irked the American president.
I have just authorized a doubling of Tariffs on Steel and Aluminum with respect to Turkey as their currency, the Turkish Lira, slides rapidly downward against our very strong Dollar! Aluminum will now be 20% and Steel 50%. Our relations with Turkey are not good at this time!
— Donald J. Trump (@realDonaldTrump) August 10, 2018
As a result, Trump announced to double the level of tariffs on steel and aluminium to 20 per cent and 50 per cent respectively.
President Erdogan declared the plunge in the lira as a deliberate attack on the Turkish economy. He said that if West has dollar, they have the power of the people and will pull themselves out of the crisis.
“Don’t forget, if they have their dollars, we have our people, our God. We are working hard. Look at what we were 16 years ago and look at us now.”
Erdogan’s call for protest worked. Showing off their patriotism in the war against the American currency, the Turks secretly beefed up their foreign currency accounts by nearly half a billion dollars.
How did they fight the crisis?
Turkey doubled tariffs on some imports from the US – such as passenger cars, alcohol and tobacco.
The Uşak Municipality issued a statement announcing their decision to suspend their budget for social media to prevent any money going to U.S. companies like Facebook, Google, Instagram, Twitter and Youtube.
Erdogan called the citizens to convert out of dollars and gold and buy the lira to help fight a “national struggle”. As a result, the currency renewed its sell-off. Ankaralılar Association (AHİD) members collected 65 gold bracelets, 105 gold coins, $2,500 and 3,000 euros only one weekend to sell.
AHİD President Hilmi Yalman cited Erdoğan’s announcement saying people have to do everything in their power to protect the Turkish lira.
“Trump’s declaration of economic war or the current level of the dollar is of no consequence. Turkey will eventually emerge as the victor. Who are you Trump to interfere with our economy? We will produce more jobs” – said Yalman.
Turkish Hockey Federation Chairman Sadık Karahan also said yes toErdoğan’s call. The Federation sold foreign currencies and announced that the federation had converted the 25,000 euros in its bank accounts to lira.
The mayor of the Black Sea province of Rize, Reşat Kasap, went to a jeweller and sold his wife’s gold. Kasap said this is his acknowledgement of Erdogan’s call and they will do all it takes to emerge out gracefully from the crisis.
The shopkeepers also sprung into action, playing their part. A tea shop in Erzincan in the east of the country announced that anyone that sold $100 would receive a free tea.
Pakistan needs to do the same:
As dollar reached its all-time historic high, #BoycottDollar trended on Twitter. People are requesting businesses and each other as well to take self-sustained actions to do something about the dollar hike. They want to follow how Turks dealt with the crisis and said to take measures that will elevate the value of the rupee.
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